When we look at our Technographics data on mobile banking adoption by bank, it’s clear that some banks are doing much better than others. Why?
Some banks are lucky. Some banks have distinctive brands or propositions that have earned them a customer base that is younger, better educated and higher income than the population as a whole. These customers are more likely to own smartphones, more like to use the mobile Internet, and more likely to be technology optimists. That makes them pre-disposed towards using mobile banking and so relatively easier to persuade to adopt mobile banking.
Others have just worked hard. The rising tide of mobile Internet adoption is not raising all boats at equal speed. Some banks have persuaded far more of their customers to use mobile banking than others. The secret of their success? The digital banking teams at the most successful banks have worked long and hard to design, build and promote mobile banking services that meet their customers’ needs.
A few weeks ago, the four largest Dutch banks revealed that the number of app users had doubled again in the past year. Dutch mobile phone users are checking their current balance twice as often via their phone as they do via their PC. Unsurprisingly, activity peaks around payday. Given that mobile can be seen as the most important development in financial services in recent years, it is time to get your mobile act together. Digital teams at financial services firms should think seriously about adding relevant mobile touchpoints to their distribution channels. What does this mean for specific sectors of the financial services industry?
Mobile is crucial for retail banking. As my Forrester colleagues Peter Wannemacher and Tiffani Montez show, mobile banking is not just a business opportunity — mobile banking is an imperative. As we can see from our Dutch news story, mobile banking is now growing rapidly in some countries and will displace online banking for everyday tasks like checking account balances, viewing transaction histories, making transfers, and paying bills. Great design is key, however: One nice example is the mobile app from Dutch banking challenger KNAB, in which inter active design and functionality deliver convenience and simplicity:
My latest research on Building Next Generation Mobile Banking Solutions has been published for a few days now. I’ve already gotten phone calls from clients stating this research is not only timely, but speaks to the very challenges their organization is facing when considering how to build next generation mobile banking solutions. The resounding theme, as my latest research uncovers: Even the best mobile strategy can be a victim of poor execution. Digital banking executives are feeling the pain of their current mobile banking platform. While most are plagued with the realization that their current mobile banking platform may not be scalable or flexible enough to deliver next generation mobile banking solutions, others are facing a more disruptive challenge—dealing with the vendor acquisition and consolidation aftermath. Regardless of your current plight, digital banking teams should consider the following as they build next generation mobile banking solutions:
A well-defined strategy can fall short in execution. Technology can make or break even the best mobile banking strategy. The pressure is on to get something out the door, but too much focus on short-term delivery has meant that some banks have sacrificed the ability to deliver long-term capabilities.
A vendor relationship can hinder or enhance your mobile banking strategy. Banks that are using a vendor that has been recently acquired are burdened with the task of understanding how that acquisition will affect their mobile banking strategy and roadmap. Specifically, banks are trying to determine if acquisition will require migration to a new platform, dedicated internal resources to support migration activities, or a new vendor altogether.